The KOSPI took a nose dive once again. The U.S. government's stimulus package drove the New York Stock Exchange up on March 9, but it was not enough to ease investors' anxiety in the Korean stock market. Rather, a surge in the number of confirmed COVID-19 cases in the United States caused foreign investors to sell stocks in the Korean market. Samsung Electronics has been a favorite stock among foreign investors, but it recorded the biggest drop in two years as many foreigners began to massively sell its stocks.
On March 10, the stock price of Samsung Electronics closed at 52,100 won, down 4.58 percent (2,500 won) from the previous day, the Korea Exchange said on March 10. It is the biggest drop since a 4.86 percent drop on Oct. 11, 2018 due to an economic downturn that began in the United States. As the stock price plunged, Samsung Electronics' market capitalization shrank by about 14.8 trillion won to 311.1 trillion won from 325.95 trillion won.
As mainly foreign investors sold Samsung Electronics shares, it significantly lowered the Korean tech giant’s stock price. Foreigners sold 549.4 billion won worth of Samsung Electronics stocks during the day. Foreigners recorded 700.6 billion won in net selling on the day, with Samsung Electronics accounting for 78.4 percent of the total.
Foreigners sold 620 billion won worth of shares in the electrical and electronics industries including Samsung Electronics. Individuals recorded net buying of Samsung Electronics stocks worth 673.5 billion won, but they failed to reduce the drop as institutional investors net sold the company’s stocks worth 149.4 billion won.
As foreigners continue to sell Korean stocks, the volatility of the Korean stock market has been maximized. The KOSPI 200 Volatility Index soared to a record high this year by climbing 8.05 percent (2.8 points) to 37.6 points.